Swedish Traders Guide
As one of the wealthiest countries in the world, Forex trading in Sweden has always been very popular, and it continues to be so. With the krona being a popular currency to trade in, and because of the wealth of the country, it is also a widespread market for brokers around the globe.
Of course, with so many businesses all fighting for their share of the market place, they are keen to encourage you to open an account. This is excellent news for traders as it means there is plenty of choices. From the quality of the trading platform to the incentives that are offered to new and experienced traders, there are so many benefits.
While choice is a good thing it can also make selecting your Forex broker a problematic task. Who has time to go trawling through the internet looking for the one that best suits your trading needs? That is where we can help. We do all the research for you, presenting you with a list of only the best the market has to offer.
In this article, you will learn:
- What rules and regulations apply in Sweden
- The benefits you should be looking out for
- How we research our recommendations
Traders in Sweden
With so many local and foreign brokers to choose from, there is a lot to get your head around. Whether you are new to trading or are looking to change brokers, how do you know who to select? It can be a hard task, going through each one individually and matching the ones that best suit your requirements. Here are the key points that you should be looking for when it comes to Forex trading:
Trade Types And Payouts
If you are basing your decision on the diversity of what the broker has to offer and if the payouts are right, then this will be an essential factor in your decision. Many offer payouts of between 70-85%. This is a useful guide for you to follow. Anything higher could be seen as too good to be true, and anything lower may make it not worth your time. You also need to ensure that an extensive selection of currencies is offered, or at least the ones that you are keen to trade-in.
Welcome Bonuses And Deals
With so much competition in the market place, you will find a wide range of bonuses offered to new traders. They will either take the form of a no deposit bonus or a deposit bonus. The first is ideal if you want to test the platform without risking your own money. The latter will be more significant and will give you more opportunity to trade. Bear in mind that bonuses cannot be withdrawn until they have been traded several times.
For those who are keen to trade on the move, you must choose a Forex broker that offers an excellent mobile trading experience. This will either be in the form of an app or a mobile-friendly website. Don't settle for a bad trading experience. Make sure that you can easily navigate the site from your phone or tablet. You should be able to comfortably read the screen and carry out the actions required.
Many of the top name Forex brokers are operating in Sweden. They are known for their excellent customer experience, which includes good customer support. Check to see what the options are from the website. Do they offer a live chat assistant or is there a variety of contact methods including links to their social media pages?
Broker Fees And Tax
If you are wondering about the taxes on trading in Sweden, then it is best to consult a tax advisor or financial professional. Forex profits are subject to tax, but only 70% of losses can be offset. You will need to keep a transaction history so that you have the information to hand when it comes to filling in your tax return.
Many brokers will offer the facility to download your transaction history for a specific period. If you don't pay the tax due on your profits, and this is discovered, you could face substantial penalties.
There are also fees to consider. Some of these are larger than others. In addition to the commission you will pay for a successful trade also look out for these fees:
While all of these fees are relatively small, when combined and charged regularly, they can soon become more significant than you anticipate. Make sure that you clarify the fees that you will be expected to pay before you start trading.
Forex trading in Sweden is wholly legal and permitted. It is your right to trade Forex if you so wish. There is nothing to stop you from choosing either a local or a foreign broker. The only stipulation from the FSA (Financial Supervisory Authority of Sweden) who regulate the market, is that the broker has to have EU licensing.
With so many companies keen to take their share of the Swedish market, many of them will comply with this requirement. Be careful though to ensure that you don't choose one that is operating beneath the radar.
The FSA is very good at regulating the market. If they have evidence to prove that unlicensed brokers are offering dubious rewards then they will crack down on them, they have the power to put them out of business as was the case with a particular business in 2014.
Our team of experienced traders thoroughly test all of the brokers on the site.
How we Recommend Brokers
For those that are new to trading or changing their broker, you must make the right decision. The worst possible scenario is that you pick a rogue business that will disappear with your funds. We want to make sure that this doesn't happen to you. To ensure that you choose the best, that offers the right benefits, we carry out extensive research of the market place.
Our team of experienced traders and financial experts will test all of the brokers to ensure that they meet our high expectations. From the welcome bonuses, trade types and payouts to the mobile trading platform and demo account, every aspect of trading is put through its paces.
Once we have carried out our research, we will then present our findings to you. First of all, we examine each aspect and score the company on its offering. In addition to this we break down each of the benefits and details of the company in a detailed and comprehensive review. The idea is that we do the research and you then select your broker.
This saves you hours trawling through all of them deciding which is the best for you. All you need to do is select the ones you like the look of and pick your favourite from a shortlist. Then you can open an account and begin your trading experience.
Is Forex trading in Sweden legal and safe?
There is nothing to stop you from trading in Forex in Sweden. Both local brokers and foreign ones are allowed to market their services to you as a Swedish resident as long as they have licensing.
Do I need to pay fees and taxes on my profits?
Yes, you do need to pay tax on your Forex profits. You can offset some of your losses against the profits but only a limited amount. Make sure that you are abiding by the tax rules as there can be stiff penalties.
Can I test brokers before trading with real money?
You can either use a no deposit bonus or a demo account. The no deposit bonus will get you free trades. A demo account will give virtual funds which give you more chance to practise.
Is it easy to make deposits and withdrawals?
As long as you have a debit card, or can pay through an e-wallet, then you can trade immediately. A withdrawal will be sent back to the original payment source.
Can I trade using my mobile or tablet device?
If you are looking to trade, then you should be able to do so wherever you have an internet connection and a mobile phone. Check to see if the broker has an app or mobile website.
Jessica has written for us for 5 years and offers a unique perspective due to her having worked in the financial industry internationally. In fact, Jessica has worked in a staggering 8 countries including Germany, China and the USA.